First HoldCo Plc has reached a historic milestone on the Nigerian Exchange (NGX), with its share price climbing to an all-time high of N87.25, lifting the financial services group's market capitalization above N3.8 trillion for the first time.
The milestone underscores growing investor confidence in the company, which has emerged as one of the strongest-performing banking stocks on the Nigerian Exchange in 2026 despite periods of volatility across the broader equities market.
At the new share price, First HoldCo is now valued at approximately N3.83 trillion, ranking among the most valuable financial institutions listed on the NGX. Only GT HoldCo and Zenith Bank currently command higher market capitalizations.
The company's impressive rally has been supported by sustained institutional demand, improving financial performance, and an aggressive recapitalization programme. Investors have also continued to respond positively to Chairman Femi Otedola's increasing ownership in the group, viewing it as a strong vote of confidence in the lender's long-term prospects.
Strong buying momentum fuels rally
The upward momentum has been building for months, with Otedola steadily increasing his stake in the company.
According to First HoldCo's 2025 financial statements filed on the Nigerian Exchange, the chairman raised his ownership to 18.12% after acquiring an additional 3.82 billion shares, representing a year-on-year increase of more than 90%.
Since then, he has continued to strengthen his position through further market purchases and participation in the company's private placement.
What the numbers show
Market data highlights the scale of First HoldCo's recent performance:
- The stock gained 9.96% on Thursday to close at N87.25, setting a fresh all-time high.
- Month-to-date, the share price has surged 55.66%, rising from N56.05 at the end of June.
- Since the beginning of 2026, the stock has advanced from N47.90, meaning it has more than doubled in value despite the broader market correction witnessed in June and early July.
- Trading activity has remained exceptionally strong, with 37.68 million shares exchanged on July 16, following a record 1.26 billion shares traded on July 9—the largest single-day trading volume in the company's history.
The rally has enabled First HoldCo to significantly outperform both the NGX Banking Index and the broader All-Share Index. The stock is currently trading at an earnings multiple of 15.9x, one of the highest valuations among Nigerian banking stocks.
Recapitalization strategy boosts confidence
Investor optimism has also been reinforced by the group's ongoing balance-sheet strengthening programme.
At its Annual General Meeting held on May 29, shareholders approved plans to raise up to N253 billion as part of First HoldCo's ambition to achieve N1 trillion in paid-up capital—well above the Central Bank of Nigeria's N500 billion minimum requirement for banks with international authorization.
The company has already exceeded the regulatory minimum ahead of schedule, with paid-up capital now above N500 billion.
Management has indicated that additional capital raising exercises are still being considered, following the successful private placement completed earlier this year.
The group has also injected approximately N270 billion into its flagship banking subsidiary, FirstBank, as part of broader recapitalization and balance-sheet strengthening efforts.
Earnings recovery strengthens outlook
The company's first-quarter 2026 results suggest that earnings are recovering strongly after the exceptional charges recorded in 2025.
Interest income increased to N704.4 billion, compared with N625.2 billion in the corresponding period of the previous year.
Operating profit also climbed sharply to N320 billion, up from N186.6 billion, supported by stronger income from loans, investment securities, as well as improved fee and commission earnings.
Shareholders' equity rose to N3.4 trillion, while retained earnings increased significantly to N667.9 billion, compared with N401.7 billion previously. Analysts believe the stronger capital position could improve the company's capacity to deliver higher shareholder returns in the future.
Although First HoldCo reported a 71.18% decline in profit before tax for the 2025 financial year and a 93.36% drop in profit after tax, management attributed the decline primarily to a one-off impairment charge of roughly N748 billion linked to legacy non-performing loans.
Addressing shareholders, Otedola described the decision as a deliberate effort to reposition the institution.
"Clean house."
He explained that the impairment represented a strategic balance-sheet reset rather than evidence of weakness in the group's core business, a position many investors appear to have embraced given the stock's sustained rally.
Otedola's growing stake remains a key catalyst
Analysts continue to point to Otedola's aggressive accumulation of First HoldCo shares as one of the biggest drivers of investor confidence.
In May, he completed the largest single purchase since assuming the chairmanship, spending N43.41 billion to acquire 549.5 million shares, increasing his stake to about 19.36%.
He subsequently participated in the company's N45 billion private placement, receiving approximately 672.9 million shares valued at about N29.6 billion.
Those transactions lifted his total ownership to approximately 20.42%, making him the company's largest shareholder ahead of RC Investment Management Limited.
Market observers believe the chairman's continued investment has reinforced confidence that management remains committed to the company's long-term transformation strategy rather than pursuing short-term gains.
With recapitalization progressing ahead of regulatory deadlines, earnings showing signs of a strong rebound, and insider buying continuing to support market sentiment, investors will now be watching the company's next earnings release, expected between late July and early August, for further clues on whether the rally still has room to extend.